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Russia's economy plunges 4.7% y/y in Oct after 3% drop in Sept

MOSCOW, Nov 20 (Reuters) - Russia’s gross domestic product fell 4.7% year-on-year in October, after a 3% decline in September, the economy ministry said on Friday.

Economic contraction was mostly driven by a drop in output in the manufacturing and agriculture sectors, the ministry said, putting the January-October GDP contraction at 3.6%.

The ministry revised September’s GDP contraction figure from the 3.3% reported a month ago.

The Russian economy took a hit from a global drop in prices for oil, its key export, and the COVID-19 pandemic, while also feeling the burden of Russia-specific geopolitical risks and fears of more sanctions against Moscow.

“With virus restrictions tightening in many regions, the roll-out of the vaccine pushed back, and fiscal support unlikely to be stepped up, the economy will struggle to gain momentum over the coming months,” Capital Economics said in a note.

President Vladimir Putin said on Friday the economy was on track to fall 3.9% this year, which is more optimistic than the central bank’s forecast of an economic contraction of up to 5%. (Reporting by Andrey Ostroukh and Darya Korsunskaya; Editing by Alex Richardson)